Giant Food parent Ahold Delhaize posted a strong performance in their most recent quarter, including a 9.2% increase in sales. Food Lion and Hannaford led the way, with same-store sales up by double-digits. Stop & Shop also performed well, according to a report in Supermarket News (SN).
CEO Frans Muller told SN that he expects inflation to continue to moderate, although higher prices will continue to impact the company’s operations. As a result, he expects retailers and suppliers to seek to drive higher unit volumes through promotions and trade spending in the year ahead.
Muller also pointed out that Ahold’s online business in the U.S. has evolved in recent years towards click-and-collect as opposed to delivery. He said they have become much more efficient at picking orders and getting them into customers’ hands upon their arrival at the store, thanks in part to technology that makes the process more convenient for customers and more cost-effective for the company.
Regarding industry consolidation, Muller expects more. He suggested that more independent operators might be willing to sell rather than make the required investments to compete in a more digitally-oriented environment.